The global debt clock is completely red. Think about that. There are zero countries in the green right now. The whole planet is awash in debt. What do you think the eventual solution will be? I think changes in currency markets are inevitable. You cannot have this kind of global misery without someone breaking ranks.

But this is really a silly way to look at it. Just like all businesses should have some debt all countries having reasonable levels of debt is just good business.

Lets say you only have only two countries in the world and each holds 10% of each other's debt. Is that a good thing or a bad thing? 100% of economists will tell you it is a good thing. But the entire world in this case is in debt by your definition.

When debt levels get above 50% of the countries GDP then it is time to start getting a bit worried. There are about 50 countries in the world above that level including us. These countries must put in austerity measures to get the debt levels back to healthy levels.